Automobile sector which is a major consumer of natural rubber could face rough weather on a weak monsoon, according to Society of Indian Automobile Manufacturers (SIAM).
KOTTAYAM, INDIA (Commodity Online): Rubber prices in Indian market have eased from Rs 15000 to Rs 14500 per 100 kg levels this month amidst rise in import of the commodity due to prevailing lower global prices.
Automobile sector which is a major consumer of natural rubber could face rough weather on a weak monsoon, according to Society of Indian Automobile Manufacturers (SIAM).
Car sales have imporved 3% in may to 1.49 lakh units compared to 1.44 lakh units in the year-ago period.Reduction of excise duty on vehicles in the Union Budget had helped spur growth and industry expects the excise rate to be continued beyond June 30.
According to India’s Rubber Board, natural rubber imports were up 80% during April and May on a year-on-year basis. Analyts attributed the rise in imports to sharp drop in global prices with differential rising to Rs 20 per kg.
India’s natural rubber imports cross the 3,00,000 ton mark for the first time in 2013-15 at 324,467 tonnes while the yearly production was 844,000 tonnes. In 2014-15, imports are expected to cross 400,000 tonnes. April-May production fell 7% to 104,000 tons.. According to Rubber Board data, consumption had a slight increase of 0.4 per cent at 165,000 tonnes. This was 164,305 tonnes in April – May period of last FY.
According to the board, production during 2013-14 was down 7.6 per cent at 844,000 tonnes as against 913,700 tonnes in last financial year. This is for the first time during last 10-year period that natural rubber production recorded a dip.
Meanwhile, Rubber Board indicated that indigenisation of warships building could pave the way for increased use of natural rubber and hence provide support for prices.
Physical rubber prices finished steady on Tuesday. Trading activities were at a low key and the commodity lost its direction amidst extremely dull volumes. The market managed to sustain at the prevailing levels following a better closing in international trendsetters, traders said.
Sheet rubber closed unchanged at Rs.145.50 (Rs 145.50) a kg, according to traders. The grade improved to Rs 145 (Rs 144.50) and Rs 142 (Rs 141.50) respectively, according to the Rubber Board and dealers. June futures concluded at Rs 143 (Rs 143.81), July at Rs 144.50 (Rs 144.41), August at Rs 142.20 (Rs 141.67), September at Rs 141.17 (Rs 141.37) and October at Rs 140.01 (Rs 140.79) on the National Multi Commodity Exchange. RSS 3 (spot) improved to ₹121.22 (Rs.120.09) at Bangkok. June futures closed at ¥187.1 (Rs 108.36) on the Tokyo Commodity Exchange.
– Commodity Online
